State-Run Investment Funds: Major Institutional Investors on Global Financial Markets
The article provides a basic description and taxonomy of sovereign wealth funds, rapidly gaining importance in the international monetary and financial systems. SFWs are pools of assets owned and managed directly or indirectly by governments to achieve specific objectives. Tentative estimates of foreign assets held by SWFs are between USD 1.9 trillion and USD 2.9 trillion. These amounts are about 10 times less than the assets under management of mature market institutional investors and modestly higher than those managed by hedge funds. Current IMF projections are that sovereign wealth funds will accumulate international assets under sovereign management up to about USD 12 trillion by 2012, but growth estimates are different. The author´s estimate of the SWFs´ growth by 2013 is between USD 3.9-5.4 trillion. These funds have raised concerns about financial stability, corporate governance and political interference and protectionism. The following analysis does not prove the negative distortions of these funds on global financial stability and capital flows. In response to these concerns, the IMF with SWFs have made public voluntary Generally Accepted Principles and Practices (GAPP) for SWF, and the OECD has published guidance on recepient country policies towards the SWFs. Recipient countries should strive to avoid protectionism and should uphold fair and transparent investment frameworks.
Volume (Year): 2010 (2010)
Issue (Month): 2 ()
|Contact details of provider:|| Postal: |
Phone: (02) 24 09 51 11
Fax: (02) 24 22 06 57
Web page: http://www.vse.cz/
More information through EDIRC
|Order Information:|| Postal: Redakce Acta Oeconomica Pragensia, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3|
Web: http://www.vse.cz/aop/ Email:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roland Beck & Michael Fidora, 2008.
"The impact of sovereign wealth funds on global financial markets,"
Intereconomics: Review of European Economic Policy,
Springer, vol. 43(6), pages 349-358, November.
- Roland Beck & Michael Fidora, 2008. "The impact of sovereign wealth funds on global financial markets," Occasional Paper Series 91, European Central Bank.
- Aaditya Mattoo & Arvind Subramanian, 2009.
"Currency Undervaluation and Sovereign Wealth Funds: A New Role for the World Trade Organization,"
The World Economy,
Wiley Blackwell, vol. 32(8), pages 1135-1164, 08.
- Aaditya Mattoo & Arvind Subramanian, 2008. "Currency Undervaluation and Sovereign Wealth Funds: A New Role for the World Trade Organization," Working Paper Series WP08-2, Peterson Institute for International Economics.
- Arvind Subramanian & Aaditya Mattoo, 2008. "Currency Undervaluation and Sovereign Wealth Funds: A New Role for the World Trade Organization," Working Papers 142, Center for Global Development.
- Mattoo, Aaditya & Subramanian, Arvind, 2008. "Currency undervaluation and sovereign wealth funds : a new role for the World Trade Organization," Policy Research Working Paper Series 4668, The World Bank.
- Lucas, Robert E, Jr, 1990. "Why Doesn't Capital Flow from Rich to Poor Countries?," American Economic Review, American Economic Association, vol. 80(2), pages 92-96, May.
When requesting a correction, please mention this item's handle: RePEc:prg:jnlaop:v:2010:y:2010:i:2:id:297:p:3-22. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Vaclav Subrta)
If references are entirely missing, you can add them using this form.